Friday, 12 July 2013 09:14

Fierce rivals’ joint venture boosts exports 20%

Written by 

TWO FORMERLY fierce rivals in avocado exporting say their successful collaboration could signal the way forward for other export industries.

 

The forecast for Australia earnings this season have jumped 20%, from $40m to $50m, for the newly formed avocado exporter Avoco.

Now representing about 75% of New Zealand avocado growers, Avoco is a collaborative venture after decades of "fierce rivalry yet mutual respect" between New Zealand's two biggest avocado export companies, says an Avoco director Alistair Young.

Southern Produce Ltd, Bay of Plenty, and Primor Product Ltd, Auckland, put aside their long-standing commercial competitiveness to form the joint venture company to export to Australia, the biggest export market for avocado. They also now represent about 75% of exports to that market.
This bold move could signal the way forward for other export industries, they say.

"We have realised it makes complete sense to work as a partnership against foreign competitors rather than fight among ourselves," says Young, who is also a Southern Produce director. "The interests of the New Zealand avocado industry and its growers are best served by a unified entity focused totally on getting the best orchard-gate return for growers."

Primor Produce director and general manager John Carroll says growers demanded they perform better as an export industry. Avoco was able to revise its forecast earnings upwards at its first board meeting in June.

The two companies are also collaborating in all other export markets under their Avanza commercial arrangement.

More like this

Export prices set to remain elevated

Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.

2024 red meat exports end on a high

New Zealand's red meat exports for 2024 finished on a positive note, with total export value increasing 17% over last December to reach $1.04 billion, according to the Meat Industry Association (MIA).

Featured

Editorial: Credit where it's due

OPINION: While farmers are busy and diligently doing their best to deal with unwanted gasses, the opponents of farming - namely the Greens and their mates - are busy polluting the atmosphere with tirades of hot air about what farmers supposedly aren't doing.

Farmers Lead Sustainability Push: Woodchip bioreactor cuts nitrate runoff in Manawatu

Claims that farmers are polluters of waterways and aquifers and 'don't care' still ring out from environmental groups and individuals. The phrase 'dirty dairying' continues to surface from time to time. But as reporter Peter Burke points out, quite the opposite is the case. He says, quietly and behind the scenes, farmers are embracing new ideas and technologies to make their farms sustainable, resilient, environmentally friendly and profitable.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Peasants' revolt

OPINION: Media luvvies at Stuff, the Spinoff and the Granny Herald are spending more time than ever navel-gazing about why…

Why so slow?

OPINION: Why does it take Treasury so long to turn around its figures on how the economy is tracking?

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter